Sprouts Farmers Market closes $600 million revolving credit facility
On Wednesday, Citi analysts, led by Stephen Trent (NSE:TREN), confirmed their Buy rating and $72.00 price target for Delta Air Lines (NYSE:DAL), following the company's release of its first-quarter earnings. Delta reported an adjusted earnings per share (EPS) of $0.46, surpassing the FactSet consensus estimate of $0.38. Trading at a P/E ratio of just 6.68, InvestingPro analysis suggests the stock is currently undervalued. The results highlighted Delta's strong business model amid ongoing uncertainties related to demand and the global tariff controversy.
During the first quarter of 2025, Delta generated $1.3 billion in free cash flow (FCF) and anticipates a double-digit EBIT margin for the second quarter. With trailing twelve-month revenue of $61.64 billion and EBITDA of $8.2 billion, the company maintains robust operational metrics. Citi analysts commended Delta's resilience and suggested that it would be unreasonable to pressure the management to provide full-year guidance without clearer insights into the overarching political and economic climate.
Delta's recent financial performance revealed a 7% increase in premium cabin revenue, contrasting with a 1% decline in main cabin revenue growth during the same period. Additionally, the airline's loyalty program and travel-related services revenues experienced an 11% and 4% rise, respectively. Delta also reported consistent co-branded card remuneration.
Looking ahead, Delta expects its non-fuel unit cost growth to remain in the low single digits throughout the remainder of the year. This projection aligns with the company's ongoing efforts to manage costs effectively while navigating a complex global environment. InvestingPro has identified several additional insights about Delta's performance, with 12+ exclusive ProTips available to subscribers, including detailed analysis of the company's financial health and market position.
In other recent news, Delta Air Lines has faced a series of developments impacting its financial outlook and investor sentiment. The company has revised its first-quarter revenue growth forecast to a range of 3% to 4%, down from the initially expected 7% to 9%, citing higher fuel costs and a weaker economic environment. This adjustment has led UBS to downgrade Delta's stock rating from Buy to Neutral, with a significant reduction in the price target to $42. Additionally, Delta's announcement of a profit guidance cut has contributed to a broader sell-off in travel stocks, highlighting concerns over consumer spending and economic uncertainty.
Evercore ISI also adjusted its outlook for Delta, lowering the price target to $70 while maintaining an Outperform rating, pointing to increased policy uncertainty and recent tariff announcements affecting corporate travel behavior. Meanwhile, a preliminary report from the Transportation Safety Board of Canada has shed light on a Delta Air Lines regional jet incident in February, where the aircraft flipped over upon landing, resulting in injuries to passengers but no fatalities. The incident is under investigation and has been noted as one of several recent air crashes impacting domestic travel demand.
Despite these challenges, Delta has reported strong booking numbers for April and May, suggesting potential recovery in premium and international travel segments. However, UBS and other analysts remain cautious about Delta's near-term financial performance, given the current economic landscape and market fluctuations. As Delta navigates these turbulent times, investors are closely monitoring the situation for further developments.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.